Evolving Female Labour Force Participation In India: The Next Growth Chapter

Understanding from the ground level

To tackle the issue of low women’s participation in the workforce, it is crucial to first comprehend the existing landscape. The factors influencing women’s workforce engagement in India are multifaceted, encompassing cultural norms and educational opportunities.

Key factors affecting female labour force participation

• Cultural and societal norms: Deep-seated cultural and societal influences significantly impact women’s workforce participation.
• Education and skill development: Access to education and skill development opportunities plays a pivotal role in enhancing women’s employability
• Challenges of motherhood: While maternity leave policies exist, they may not adequately address the needs of working mothers. Additionally, the lack of affordable childcare facilities makes it difficult for women to return to work after childbirth.
• Limited access to education and skill development: Limited access to quality education and vocational training opportunities restricts women’s entry into skilled professions, impacting their employability and career prospects.
• Government policies and legal frameworks: Government policies can shape women’s workforce participation.
• The role of flexible work and childcare: Flexible work arrangements can support women’s employment. They allow women to balance work and family responsibilities. Childcare and maternity benefits are also crucial. They can help retain women employees in the workforce.

The recent reports on women dropping out of the labour force – in record numbers, created a tsunami-impact in the world of work. Usually, when women work, it’s a boon to any economy. Most nations experience faster development when women actively participate in their workforces.

Economists are stumped, and concluded by reasoning that:

• As household incomes increase, some women choose to leave the workforce due to financial security.
• Another reason is pursuit of education; more and more women are enrolling in schools and colleges and staying in school longer than previous generations.
• Third reason cited is conservative ideas about a woman’s obligations towards their family.
• Safety concerns while migrating to urban areas in pursuit of a job, as the country is still often considered unreliable and unsafe for females to commute long distances in public transportation, especially during late hours.

India’s labour force is categorised into three main sectors: agriculture and allied industries, manufacturing, and services sector. While agriculture employs the largest portion of the workforce and is one industry that employs more women than men, it contributes the least to the nation’s GDP.

The FMCG industry, ranked as the fourth largest sector in the Indian economy, has seen robust growth driven by consumer demand. However, it continues to grapple with gender disparity, which has been highlighted in our recent report on “Empowering the Essentials: A Deep Dive into India’s FMCG Workforce.”

Balasubramanian A, VP & Business Head, TeamLease, emphasised the gender imbalance in the FMCG industry workforce. He said, “The gender disparity in the FMCG workforce, with male associates comprising over 90%, underscores the need for concerted efforts to promote gender diversity and inclusivity in the industry. Embracing diversity fosters innovation and reflects a commitment to creating a more equitable workplace.”

Initiatives and progress

The journey is challenging, but the potential rewards for India’s economy and society are immense. Let’s strive for a more inclusive and diverse workforce. However, amidst these challenges, there have been commendable efforts and initiatives aimed at promoting women’s participation in the workforce. Government schemes such as the Beti Bachao, Beti Padhao (Save Daughter, Educate Daughter) campaign have sought to empower women economically and socially. Furthermore, legislative measures such as the Maternity Benefit Act and the Sexual Harassment of Women at Workplace (Prevention, Prohibition, and Redressal) Act have provided legal frameworks for safeguarding women’s safety and rights in the workplace.

When women succeed, the nation succeeds

The benefits of increased female labour force participation in India extends beyond economic growth. Studies have shown that empowering women economically leads to better health and education outcomes for families, reduces poverty, and fosters more resilient communities. Furthermore, gender diversity in the workforce brings varied perspectives, creativity, and innovation, thereby enhancing productivity and competitiveness.

India stands at a crucial trajectory where unlocking the full potential of its female workforce is not only a moral imperative but also an economic necessity. The journey ahead is challenging, but the transformative impact of empowering women is undeniable. Through collaborative efforts, innovative policies, and a commitment to gender equality, India can harness its demographic dividend and pave the way for a brighter, more equitable future.

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